The clarion. [volume] (Jackson, Miss.) 1883-1888, 1887-08-10
The Chickasaw School Fund.
MooREsvILLE, Miss, July 90, 1857.


Of The CLARION, please answer the fol-
lowing questions:
l. What is the Chickasaw School
fund?
2. What kind of bonds (if bonds at
alb are used to bring this fund?
3. Give rate OF interest.
4. Does the entire State get the benefit
of this fund?
By answering the questions you will
confer great favor on many of your
subscribers.
Yours truly, J. NJ. KELLY.
For the benefit of our esteemed sub
scribers, we copy the following clear and
concise statement of the origin and con-
dition of the Chickasaw School Fund
from the message of Gov. Lowry to the
Legislature of 1886:
l now invite your attention to brief
history OF the
CHICKAsAw SCHOOL FUND,
after which / will ask you to consider the
best means of reducing the high rate of in
terest the State now pays on that fund.
Congress, by an act approved March 3,
1903 q Statutes at Large, p. pa reserved
from sale, section number l6 In each town
ship for the support OF schools within the
same By the treaty of Pontotoc Creek, on
the 10th October, 1882, & Statutes at
Large, p. 3S0), the Chickasaw Indians
ceded to the United States all their lands
in Mississippi, embracing 6,2S3, 804 acres,
and the United States on Its part agreed to
sell the same and pay over the proceeds to
the Chickasaw Nation. Since title to the
sixteenth sections in this cession had al
ready vested in the State, this treaty could
not diyest it. But to settle all controversy
that might arise out of these conflicting
grants, by an act approved July 4th, 1886
(5 Statutes at Large, p. 116), Congress
granted TO the State in lieu OF the said six
| tenth sections one-thirty- sixth part of the
| land ceded by the Chickasaws, within the
State, which lands when selected were to
be holden Shy the same tenure and upon
| the same terms and conditions, in all re-
spects, as the said State now holds the
| lands heretofore reserved for the use OF
schools within said State" Thus the
| amount dor ated for school purposes and
known as Chickasaw school lands was
ia 800 acres. By an act approved Febru-
airy 23d, lS48, (Acts, l84S, p. 62), the State
| authorized the Secretary OF State to lease
| these lands for period of ninety nine
years, and renewable to the lessee, his
heirs or assigns forever for sum not ex-
| ceeding six dollars per acre, but certain
persons were authorized to enter at two
| dollars and half the several prescriptions
| Heretofore entered by them under the laws
of the general government. The fifth sec
| ton of this act provided that the proceeds
of these lands, after deducting the ex-
| penses of the sale, were to be a charge
upon the State, "to be held in trust by said
| State for the use of schools in the Chicka.
saw cession, and to be applied to that pur-
| pose as hereafter to be provided by law"
| 1t will be noted that these sales were
| made without the authority OF Congress
| But by an act approved, May 10, 1852, &C
Statutes at Large, p. o., Congress approved
| and ratified the sales under the act of 1915
| aforesaid, and authorized the State there
| after "to sell and convey in fee simple, OIL
lease for a term of years, as the said Legis
Iature may deem best, all or any part o.
the lands heretofore appropriated by Con
| press for the use of schools in said State
and to invest the money arising from sale
sales, as said Legislature may direct fol
the use and support of schools within the
several townships and districts of country
for which they were originally reserved
and set apart, and for no other use or pur
pose whatever" By an act approved
March 9TH, 1856, facts 1856, p. 14l), it wa
provided that the Chickasaw school fund
which arose from sales under the act o
184S, "shall become charge on the STATE
of Mississippi and shall remain and b,
subject to general appropriation, by law
from the treasury or otherwise, to be useC
by the State in the same manner as thu
~
binary sources of revenue" 1t was fur
Their provided that eight per cent interes
should be paid on this fund, TO be distrib
uted semi-annnally among the countie
entitled thereto, for the support of school,
therein. This act was continued in fore,
| by an act approved February 10th, 1867
| facts 1867. D. 39l) and strict observanc,
of all its provisions directed.
The principal of this fund now aggre
gates S816,615.71, on which the State annu
ally pays at eight per cent interest, to the
amount of 500 ,329.25.
Having ample power to pursue eithe
course it may elect, it is now for the Legis
lature to determine whether this excessive
interest shall be reduced, or the principa
paid and invested in securities of tn
United States or other good securities 70
the benefit of those entitled thereto. Th
State may adopt either plan. 1t may b,
an act Of the Legislature reduce the pres
emf rate of interest to four per cent, which
would be a fair and equitable rate or i
may raise the principal of the fund by tn,
issuance of four per cent. bonds and in
vest it in other securities. 1t is the sam
to the State in either event, but it woul,
be more advantageous to the Chickasay
counties for the State to reduce the interes
to four per cent. and retain the fund, 10
negotiable four per cent. securities canno
be purchased in the money centers of tn
world except at a premium. But what
ever method of accomplishing The obiec
NAV be adopted, the duty of the Legisa
ture TO reduce this interest in some way t,
a reasonable rate is clear. A generation
has passed away since the debt was incur
red. The State has already, at eight pc
cent. paid nearly $l,500,009 in interest
During this period money has becom,
much cheaper, and almost every State anC
government except Mississippi has SC
changed the form of its Indebtedness as t.
take advantage of this cheapness. w,
must now do likewise If we would not neg
| lect ordinary business principles, and ut
terly disregard the Interests OF the people.
| Only the following counties being il
the Chickasaw cession get the benefit Of
the fund: Alcorn, Benton, Calhoun
Chic kasaw, Clay, DeSoto, Itawamba
Lafayette, Lee, Marshall, Monroe, Pa
nola, Pontotoc, Prentiss, Quitman, Tai
lahatchie, Tate, Tippah, Tishomingo
Tunica, Union, Webster and Yalo
| busha.
The distribution of the fund is made
on the basis of acreage.
An effort was made at the last session
of the Legislature to reduce the rate OF
interest, as recommended by the Gov
ernor; but it was defeated. 1t looks
like folly for the State 10 pay eight per
cent. when IL can borrow money at five
or six. by issuing non-taxable bonds.
Prohibition Defeated IN Texas